The Government will take a tough stand against the Singapore port company PSA International, if it backs out of signing the concession agreement to build the fourth container terminal at Jawaharlal Nehru Port, the Union Shipping Minister, G.K.Vasan, said on Friday.
The consortium led by PSA and its local partner ABG Ports was awarded the Rs 6,700-crore project in last September.
However, the consortium has failed to sign the contract till today.
JNPT had given an ultimatum to the Singapore Government-owned PSA last month asking it to sign the contract within ten days. According to port sources, there has been no response so far from the Singapore firm.
“We will take a tough stand. I cannot say now what will be the action, we will be taking a tough stand,” the Minister told Business Line , when asked whether the firm will be blacklisted from bidding for other Indian projects.
The Minister was in Kochi to participate in the Emerging Kerala, a three-day event to attract investments to Kerala.
JNPT can encash the bid security of Rs 67 crore, deposited by the consortium. Besides, according to PPP model agreement, the consortium members can be blacklisted from bidding for other projects.